Brazil submits checklist to WTO in bid to join deal on gov’t purchases

Brazil has submitted to the World Trade Organization (WTO) the list of measures taken for the adhesion to the Government Procurement Agreement (GPA). Referred to as checklist, the document is a questionnaire in which the Brazilian government answers questions about the implementation of measures in a bid to attain full member status in the agreement.

The document enables the nations party to the deal to check the compatibility of the rules and procedures of the purchases made by the Brazilian government with the agreement norms. The assessment includes all entities bidding at all levels of government, the participation of foreign suppliers competing in the country, and transparent bidding.

On August 21, the Ministry of the Economy started a 60-day public consultation on Brazil’s efforts to join the GPA. The survey allows individuals and organizations to express their interest and issues regarding the terms necessary for Brazil’s admission. The contributions will be considered during the drafting of the Brazilian proposal to GPA members, which will be the next formal step to be taken by Brazil in the adhesion process.

International trade

The Government Procurement Agreement allows foreign companies to bid alongside domestic suppliers in exchange for granting Brazilian companies access to the international market. The adhesion, the Economy Ministry argued, has the potential of guaranteeing national firms access to a market where over $1.7 trillion circulate every year.

Benefits of becoming joining the pact, the ministry argues, go beyond improvements in exports. The entry of foreign companies is believed to increase competition in public purchases, allowing the government to save money and help fighting corruption by preventing anti-competitive behavior, like cartel formation. 

History

Brazil’s GPA membership proposal had been formalized by the Brazilian government at a meeting of the World Economic Forum, in Davos, Switzerland, in January. In February, the country simplified the participation of foreign companies in national bids.